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Mr Delma Lupepe

Business Reporter

The Broadcasting Division carried the country’s listed diversified media group, Zimbabwe Newspapers (1980) Ltd registering a 13 percent growth in revenue to $1,9 million in the half year to June. During the period under review, the Commercial Printing Division also recorded a 19 percent increase in revenue to $1,8 million compared to $1,5 million for the prior year.Zimpapers expects further growth from monetising the rise in traffic to websites and growth in subscriber-based digital platforms.

Chairman Mr Delma Lupepe said in a statement accompanying the half year results that the digital environment is expected to continue growing and posing both opportunities and challenges to the traditional business models.

“In tandem with the steady increase in internet penetration, the company continues to grow its digital portfolio to cater for the techno-savvy, gadget-centric and mobile generation of news consumers,” said Mr Lupepe.

“Given that the active mobile penetration rate increased by 1,1 percent in the first quarter of 2016 to reach 96,5 percent from 95,4 percent whilst penetration increased by 1,7 percent to reach 49,8 percent from 48,1 percent recorded in the previous quarter.

The company is enhancing its digital properties to cater for online audiences who congregate on its platforms from varied mobile devices to consume compelling, relevant and well-packaged content,” he said.

He said the rise in traffic to website and growth in subscriber-based digital platforms is encouraging and prospects at monetisation of the platforms are promising.

During the period under review, revenue at $19 million was down five percent on the prior year attributable to the general economic environment slowdown characterised by constrained market liquidity and declining disposable incomes.

As a result, gross profit declined to $12,7 million from $13,6 million in the comparative period last year, which was in line with the lower revenue. Gross profit margin at 67 percent remained largely in line with what was achieved last year.

Realising the declining revenues, the company remained focused on cost control and as a result operating expenses at $11,2 million were 10 percent favourable compared to $12,6 million recorded last year.

The newspaper segment registered a nine percent decline in revenue.